Brands go broke in Greece
Companies are crumbling under the weight of the economic crisis and huge liquidity problems day after day in Greece, writes Immigrant Press.
Small and medium businesses are the first to suffer, but well-known brands are no exception. Lakis Gavalas, owned by the famous Greek fashion designer Lakis Gavalas, a few weeks ago, in accordance with the Bankruptcy Code, applied for Article 99 protection in order to be able to manage its debts to creditors. The plummeting retail sales of apparel and footwear and poor financial management are considered the main reasons that led the famous fashion designer to this development - a fact that impressed the Greeks: if Gavalas is bankrupt, what about the rest ?!
The company Lakis Gavalas SA took over the Ministry of Economics, the Department of Economic Crimes: the company's debt on loans is 17,37 million euros, and the obligations on total payments to the state - 94,3 million euros.
The company - the pioneer of Internet sales - e-shop.gr also applied for protection under Article 99. The same fate befell the most famous and popular clothing and footwear companies Ridenco Commercial, Timberland, Nautica. According to the market conditions, the situation will worsen if the liquidity problem is not eliminated in the shortest possible time.
Companies are crumbling under the weight of the economic crisis and huge liquidity problems day after day in Greece, writes ...
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